diff --git a/examples/gno.land/r/demo/foo20/foo20_test.gno b/examples/gno.land/r/demo/foo20/foo20_test.gno
index 9db0d5f7a6e..38bdcb333c1 100644
--- a/examples/gno.land/r/demo/foo20/foo20_test.gno
+++ b/examples/gno.land/r/demo/foo20/foo20_test.gno
@@ -4,13 +4,14 @@ import (
 	"std"
 	"testing"
 
-	"gno.land/p/demo/users"
+	pusers "gno.land/p/demo/users"
+	"gno.land/r/demo/users"
 )
 
 func TestReadOnlyPublicMethods(t *testing.T) {
-	admin := users.AddressOrName("g1us8428u2a5satrlxzagqqa5m6vmuze025anjlj")
-	manfred := users.AddressOrName("g1u7y667z64x2h7vc6fmpcprgey4ck233jaww9zq")
-	unknown := std.Address("g1u0000000000000000000000000000000000000")
+	admin := pusers.AddressOrName("g1us8428u2a5satrlxzagqqa5m6vmuze025anjlj")
+	manfred := pusers.AddressOrName("g1u7y667z64x2h7vc6fmpcprgey4ck233jaww9zq")
+	unknown := pusers.AddressOrName("g1jg8mtutu9khhfwc4nxmuhcpftf0pajdhfvsqf5") // valid but never used.
 
 	type test struct {
 		name    string
@@ -25,7 +26,7 @@ func TestReadOnlyPublicMethods(t *testing.T) {
 			{"BalanceOf(admin)", 10000000000, func() uint64 { return BalanceOf(admin) }},
 			{"BalanceOf(manfred)", 100000000, func() uint64 { return BalanceOf(manfred) }},
 			{"Allowance(admin, manfred)", 0, func() uint64 { return Allowance(admin, manfred) }},
-			{"BalanceOf(unknown)", 0, func() uint64 { return BalanceOf(users.AddressOrName(unknown)) }},
+			{"BalanceOf(unknown)", 0, func() uint64 { return BalanceOf(unknown) }},
 		}
 		for _, tc := range tests {
 			if tc.fn() != tc.balance {
@@ -35,7 +36,7 @@ func TestReadOnlyPublicMethods(t *testing.T) {
 	}
 
 	// unknown uses the faucet.
-	std.TestSetOrigCaller(unknown)
+	std.TestSetOrigCaller(users.Resolve(unknown))
 	Faucet()
 
 	// check balances #2.
@@ -45,7 +46,7 @@ func TestReadOnlyPublicMethods(t *testing.T) {
 			{"BalanceOf(admin)", 10000000000, func() uint64 { return BalanceOf(admin) }},
 			{"BalanceOf(manfred)", 100000000, func() uint64 { return BalanceOf(manfred) }},
 			{"Allowance(admin, manfred)", 0, func() uint64 { return Allowance(admin, manfred) }},
-			{"BalanceOf(unknown)", 10000000, func() uint64 { return BalanceOf(users.AddressOrName(unknown)) }},
+			{"BalanceOf(unknown)", 10000000, func() uint64 { return BalanceOf(unknown) }},
 		}
 		for _, tc := range tests {
 			if tc.fn() != tc.balance {
@@ -68,8 +69,8 @@ func TestErrConditions(t *testing.T) {
 	std.TestSetOrigCaller(admin)
 	{
 		tests := []test{
-			{"Transfer(admin, 1)", "cannot send transfer to self", func() { Transfer(users.AddressOrName(admin), 1) }},
-			{"Approve(empty, 1))", "invalid address", func() { Approve(users.AddressOrName(empty), 1) }},
+			{"Transfer(admin, 1)", "cannot send transfer to self", func() { Transfer(pusers.AddressOrName(admin), 1) }},
+			{"Approve(empty, 1))", "invalid address", func() { Approve(pusers.AddressOrName(empty), 1) }},
 		}
 		for _, tc := range tests {
 			shouldPanicWithMsg(t, tc.fn, tc.msg)
diff --git a/gno.land/cmd/gnoland/testdata/grc20-invalid-address.txtar b/gno.land/cmd/gnoland/testdata/grc20-invalid-address.txtar
new file mode 100644
index 00000000000..da903315333
--- /dev/null
+++ b/gno.land/cmd/gnoland/testdata/grc20-invalid-address.txtar
@@ -0,0 +1,12 @@
+# Test for https://github.com/gnolang/gno/pull/1799
+loadpkg gno.land/r/demo/foo20
+
+gnoland start
+
+# execute Faucet
+gnokey maketx call -pkgpath gno.land/r/demo/foo20 -func Faucet -gas-fee 1000000ugnot -gas-wanted 2000000 -broadcast -chainid=tendermint_test test1
+stdout 'OK!'
+
+# execute Transfer for invalid address
+! gnokey maketx call -pkgpath gno.land/r/demo/foo20 -func Transfer -args g1ubwj0apf60hd90txhnh855fkac34rxlsvua0aa -args 1 -gas-fee 1000000ugnot -gas-wanted 2000000 -broadcast -chainid=tendermint_test test1
+stderr '"gnokey" error: --= Error =--\nData: invalid address'
\ No newline at end of file
diff --git a/gnovm/stdlibs/std/crypto.gno b/gnovm/stdlibs/std/crypto.gno
index 8d005dccf5c..402a6af3e22 100644
--- a/gnovm/stdlibs/std/crypto.gno
+++ b/gnovm/stdlibs/std/crypto.gno
@@ -6,9 +6,10 @@ func (a Address) String() string {
 	return string(a)
 }
 
-// IsValid checks if the address is of specific length. Doesn't check prefix or checksum for the address
+// IsValid checks if the address is valid bech32 encoded string
 func (a Address) IsValid() bool {
-	return len(a) == RawAddressSize*2 // hex length
+	_, _, ok := DecodeBech32(a)
+	return ok
 }
 
 const RawAddressSize = 20
diff --git a/gnovm/stdlibs/std/crypto_test.gno b/gnovm/stdlibs/std/crypto_test.gno
index 293f3e06945..75283c03523 100644
--- a/gnovm/stdlibs/std/crypto_test.gno
+++ b/gnovm/stdlibs/std/crypto_test.gno
@@ -15,6 +15,17 @@ func TestValid(t *testing.T) {
 		{inputAddress: "g127jydsh6cms3lrtdenydxsckh23a8d6emqcvfa", expected: true},
 		{inputAddress: "g1u7y667z64x2h7vc6fmpcprgey4ck233jaww9zq", expected: true},
 		{inputAddress: "g14da4n9hcynyzz83q607uu8keuh9hwlv42ra6fa", expected: true},
+
+		// Bech32 doesn't allow '1', 'b', 'i', 'o' for data part
+		//
+		// 	https://github.com/bitcoin/bips/blob/master/bip-0173.mediawiki#bech32
+		{inputAddress: "g1jg8mtutu9khhfwc4nxmuhcpftf0pajdhfvsqf5", expected: true},
+		{inputAddress: "g1jg8mtutu9khhfwc4nxmuhcpftf0pajdhfvsqf1", expected: false},
+		{inputAddress: "g1jg8mtutu9khhfwc4nxmuhcpftf0pajdhfvsqfb", expected: false},
+		{inputAddress: "g1jg8mtutu9khhfwc4nxmuhcpftf0pajdhfvsqfi", expected: false},
+		{inputAddress: "g1jg8mtutu9khhfwc4nxmuhcpftf0pajdhfvsqfo", expected: false},
+
+		{inputAddress: "g1u0000000000000000000000000000000000000", expected: false},
 		{inputAddress: "", expected: false},
 		{inputAddress: "000000000000", expected: false},
 		{inputAddress: "0000000000000000000000000000000000000000000000000000000000000000000000", expected: false},
diff --git a/gnovm/stdlibs/stdshim/crypto.gno b/gnovm/stdlibs/stdshim/crypto.gno
index 8d005dccf5c..402a6af3e22 100644
--- a/gnovm/stdlibs/stdshim/crypto.gno
+++ b/gnovm/stdlibs/stdshim/crypto.gno
@@ -6,9 +6,10 @@ func (a Address) String() string {
 	return string(a)
 }
 
-// IsValid checks if the address is of specific length. Doesn't check prefix or checksum for the address
+// IsValid checks if the address is valid bech32 encoded string
 func (a Address) IsValid() bool {
-	return len(a) == RawAddressSize*2 // hex length
+	_, _, ok := DecodeBech32(a)
+	return ok
 }
 
 const RawAddressSize = 20